BAKU, Azerbaijan, December 18. Central Asia is shaping up to be a hotbed of interest, with major global players looking to get their foot in the door and bolster their economic and political clout in the area. Japan, along with its partners, is pulling out all the stops to broaden its horizons, steadily keeping the lines of communication open with Central Asian countries. In the grand scheme of things, Uzbekistan holds a pivotal role in this conversation, having in recent years consolidated its status as one of the region’s key centers of economic growth.
Large-scale reforms, economic liberalization, and improvements in the investment climate have made Uzbekistan an attractive platform for long-term projects. For Japan, which traditionally prioritizes stable and predictable partnerships, these factors have laid the groundwork for strengthening ties with Tashkent.
Economic ties between Uzbekistan and Japan demonstrate steady positive momentum. In 2024, trade turnover between the two countries increased by 35%, reflecting the expansion of business contacts and growing interest of Japanese companies in the Uzbek market. At the same time, investment cooperation is also strengthening, with the total portfolio of projects involving Japanese companies and financial institutions exceeding $12 billion.
Around 100 joint ventures and organizations with Japanese participation operate in Uzbekistan, covering energy, mechanical engineering, the chemical industry, logistics, and infrastructure. Active investors include Mitsubishi Corporation, Marubeni, Sojitz, Toyota Tsusho, and Hitachi. These indicators form a solid economic foundation for the Uzbek-Japanese partnership and create conditions for its further expansion.
In light of this, the energy sector stands tall as the bedrock of bilateral cooperation and has been the linchpin for decades. Japan is among the few countries that, from the early years of Uzbekistan’s independence, consistently supported the modernization of the energy infrastructure through participation in the construction and upgrading of thermal power plants, the introduction of energy-efficient technologies, and modern solutions for power system management.
The notable collaborative projects include the construction of the 900-MW Turakurgan thermal power plant in the Namangan Region and the installation of the third combined-cycle unit at the Navoi thermal power plant, which has a capacity of 650 MW, in partnership with Mitsubishi Corporation and Mitsubishi Power. The rollout of these projects has really turned the tide on energy supply reliability and fine-tuned fuel consumption to boot and reduced specific greenhouse gas emissions. The combined output of the new power units exceeds 10 billion kWh per year, which is of key importance for the sustainable functioning of the country’s economy.
At this juncture, the collaboration between the two nations in the energy arena is steadily pivoting towards renewable energy sources, aligning with Uzbekistan’s national priorities and the worldwide climate playbook. One of the largest projects in this area is the construction of solar power plants with a total capacity of 1,000 MW in the Samarkand and Bukhara regions, along with energy storage systems with a combined capacity of 1,336 MWh.
The project is being implemented with the participation of Japan’s Sumitomo Corporation, Chubu Electric Power, and Shikoku Electric Power, in partnership with Saudi Arabia’s ACWA Power, and is one of the largest renewable energy projects in Central Asia. Its significance goes beyond individual power capacities. For Uzbekistan, it means accelerated diversification of the energy mix and reduced dependence on gas-fired generation amid growing domestic demand. For Japan, it represents the consolidation of long-term economic presence in a key regional economy and the promotion of its own technologies and financial instruments.
A key role in the project’s implementation is played by the Japan Bank for International Cooperation (JBIC), which is providing a $635 million loan and acts as the largest financing participant. Total investment is estimated at $1.45 billion. JBIC’s participation is of fundamental importance, as the bank serves as an anchor institution, reducing risks for private investors and creating conditions for attracting commercial banks and insurance mechanisms, including support from the Nippon Export and Investment Insurance (NEXI).
The collaborative framework between Uzbekistan and JBIC exhibits a systemic character. In 2024, the sides signed a three-year cooperation program that provides for the possibility of non-sovereign financing of projects by Japanese companies in the country. This mechanism is seen in Tashkent as a golden ticket for reeling in fresh Japanese investments, especially in the realms of energy, industry, and infrastructure.
In conjunction with the energy sector, the industrial domain continues to represent a pivotal facet of the collaborative framework between Uzbekistan and Japan. Japanese companies are not just putting all their eggs in one basket with equipment supplies; they’re also rolling up their sleeves to localize production, pass the baton on technology transfer, and give their industrial facilities a much-needed facelift. This approach is in line with Uzbekistan’s course toward industrialization and the development of high value-added products.
In this context, the official visit of President of the Republic of Uzbekistan Shavkat Mirziyoyev to Japan on December 18–20 and his participation in the first summit of heads of state of the “Central Asia + Japan” Dialogue in Tokyo are seen as a logical political consolidation of the already established economic and investment partnership. Uzbekistan is hoping that this visit will open the floodgates for Japanese investments and bolster the backbone of institutional support for collaborative projects.
Consequently, the bilateral engagement between Uzbekistan and Japan is evolving into a robust partnership paradigm anchored in economic collaboration, energy sector synergies, and industrial advancements. For Uzbekistan, this opens the door to long-term capital and cutting-edge technologies, while for Japan, it’s a golden opportunity to solidify its foothold in Central Asia through one of the region’s most rapidly blossoming economies.
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